Spar Mobile is the latest retailer MVNO in South Africa
Retail giant Spar Group has entered the mobile virtual network operator (MVNO) market with the launch of Spar Mobile, offering 5G data services by leveraging MTN’s network infrastructure.
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According to a company statement, Spar Mobile SIM cards are now available for purchase at all Spar, Tops, Spar Express, and SaveMor stores. Blake Raubenheimer, Spar Group’s omnichannel executive, announced that customers will receive “free data” with every in-store purchase.
Each Spar Mobile SIM card comes pre-loaded with 300MB of data and R10 airtime that has no expiry date unless used. Customers have the option to acquire a new mobile number or retain their existing one through an in-store porting process.
As an MVNO, Spar Mobile relies on established mobile operators for network infrastructure, partnering with MTN South Africa for this crucial support. MTN’s entry as the second full-fledged mobile operator in the MVNO space intensifies competition for market leader Cell C, which currently supports major MVNOs like Capitec Connect and FNB Connect. MTN’s existing MVNO clients include PnP Mobile, AfriHost Air Mobile, and Standard Bank Connect.
The MVNO landscape in South Africa is becoming increasingly competitive, with recent entries from Vodacom and Telkom, who have launched their own MVNO enablement platforms.
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Spar’s strategy to incentivize MVNO adoption and enhance customer loyalty involves rewarding in-store shopping with data bundles. This tactic aligns with successful MVNO models in South Africa, particularly those linked to the banking sector, such as Capitec Connect and Standard Bank Connect, where airtime and data rewards are tied to in-app transactions.
While pureplay MVNOs face greater customer acquisition challenges due to the lack of an existing customer base, Spar joins other grocery retailers like Shoprite (K’nect Mobile), Pick n Pay (PnP Mobile), and Boxer (Boxercom) in launching its own mobile offering. Other retailers with MVNOs include TFG Mobile and Mr Price Mobile.
Raubenheimer emphasized Spar Mobile’s focus on “simplicity, affordability and trustworthiness,” highlighting the potential for unique customer deals linking groceries and Tops products with complimentary data.
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